David Bloom, global head of Foreign Exchange Strategy at HSBC, tells CNBC that sterling could be put under massive pressure if Europe is given the benefit of the doubt and the US solves the fiscal cliff.

European shares closed higher on Monday, but Italian shares closed firmly in the red after political uncertainty surfaced, with Prime Minister Mario Monti announcing he will step down before his term ends.

After hitting a four-year low, the Chinese stock market rebounds. A look at a key reading to hit the markets next week, with Gina Sanchez, Roubini Global Economics (RGE), CNBC's Melissa Lee and the Money In Motion traders.